NATIONAL
MULTIFAMILY
REPORT
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2024 | MID-YEAR
Annual Effective Rent Change
Annual Inventory Change
Deliveries & Absorption
Employment
Rent & Occupancy
Sales
Jobs Added / Lost
LAST 12 MONTHS
2,611,000
1.7% YOY
Unemployment
June 2024
4.1%
50 BPS YOY
The U.S. economy continued to thrive as jobs creation accelerated in the first half of 2024. On average, 222,300 additional positions were added monthly to total nonfarm payrolls at a seasonally adjusted rate during the first half of 2024. Hiring was up from the 212,800 average jobs added monthly in the second half of last year. Contributing to the uptick in hiring were the 517,000 private education and healthcare positions created so far this year. This comes as many recent investments by healthcare systems came into fruition. In April, the $935 million Valleywise Health Medical Center opened in Phoenix. The next month Mayo Clinic Health System completed the $155 million Mankato hospital expansion and modernization. Additional employment opportunities in the sector are expected in the second half of this year as the $90 million Norton West Louisville Hospital is scheduled to open and next year with the new $500 million tower at Carilion Roanoke Memorial Hospital and the $186 million expansion of Mercy Hospital Fort Smith in Arkansas. Investments in healthcare also extended to the government sector, which expanded 1.2%, or by 288,000 net jobs, year to date. The $357 million San Antonio State Hospital opened in April, while the $148 million expansion of the Penn State Health Children’s Hospital completed in May. At the federal level, the IRS hired thousands through funding from the Inflation Reduction Act and plans to continue to grow its workforce through 2029.
EMPLOYMENT
United Airlines plans to hire 50,000 workers through 2025
READ MORE
IRS to hire 30,000 staff over two years
READ MORE
Boeing to hire 10,000 in 2023
READ MORE
EMPLOYMENT TRENDS
IN THE NEWS
Developers continued to invest in the apartment sector as nearly 283,700 market-rate units began lease-up in the first half of 2024. The six-month output already surpassed the annual average in the decade before the pandemic. The latest additions were concentrated in the Sun Belt region of the country. Within the region, Texas led all states for deliveries year to date with nearly 52,000 combined units coming online in the Dallas-Fort Worth, the Austin, and the Houston markets. As a result, these markets have some of the highest total of units in lease-up by mid-2024. At the same time, approximately 146,400 combined units were classified as under construction or under construction/lease-up phase for these three key Texas markets. Underpinning developers’ confidence in these areas have been positive demographic trends with local population growth more than double the national rate. More residents have contributed to sustained apartment demand, with leasing activity among the highest in these Texas markets. Even so, local net absorption year to date has trailed new inventory. The national totals reflected this trend, with approximately 257,100 net units absorbed across the U.S. in the first half of 2024. The six-month total already surpassed the 222,000 net units absorbed in all last year. This is a good sign for apartment operators as new leases are historically robust in the third quarter and forecast to remain positive over the second half of 2024.
Deliveries & Absorption
Pent-up housing demand and limited single-family inventory for sale benefitted the U.S. apartment market to start 2024. Leasing activity nearly kept pace with the inflow of apartment inventory as occupancy averaged 94.2% in the second quarter of 2024, the same rate at the close of 2023. Also boosting occupancy has been lease renewals. In the second quarter of 2024, 54.3% of renters renewed their leases. This figure was up from the average of 51.7% during the decade leading up to the pandemic. These renters have presented an opportunity for apartment operators. On average, leases renewals increased on average 4.1% in the second quarter of 2024. These leases performed better than new leases, which increased 0.9% year over year. Moderating new leases has been rising concessions utilized by more communities. In the second quarter of 2024, approximately one out of every five units offered some level of concessions. As a result, concessions averaged 5.0% of asking rent on new leases at stabilized properties, up from the 4.6% average in the fourth quarter of 2024. The use of concessions is expected to remain prevalent in the near term as operators face increased competition with 345,500 units scheduled to come online in the second half of this year. This tool will contribute to robust leasing as net absorption is forecast to surpass deliveries over the next two quarters.
RENT & OCCUPANCY
2024 Year to Date*
VOLUME
$18.4B
CAP RATE (AVG)
5.6%
Price Per Unit (AVG)
$327,204
TRANSACTIONS
239
WHAT’S TRADING?*
BUILDINGS (AVG)
8
ACRES (AVG)
12.36
YEAR BUILT (AVG)
2000s
UNITS (AVG)
304
Sources: MSCI Real Capital Analytics; CoStar Group; Berkadia Research
SALES
2024 YEAR TO DATE
DELIVERIES
283,653 UNITS
2024 TOTAL*
ABSORPTION
257,069 UNITS
DELIVERIES
629,153 UNITS
ABSORPTION
612,115 UNITS
Effective rent
Q2 2024
$1,828
0.9% YOY
OCCUPANCY
Q2 2024
94.2%
50 BPS YOY
*$50m+
SELLER
Lennar Corp. CIM Group JP Morgan Starwood Capital Heitman
Miami, FL Los Angeles, CA New York, NY Miami Beach, FL Chicago, IL
LOCATION
Buyer
KKR Brookfield AM FPA Multifamily Pantzer Properties Bridge Investment Group
New York, NY Toronto, ONT San Francisco, CA New York, NY Sandy, UT
Location
Top Buyers*
Top Sellers*
BACK TO TOP
*Projected
Source: RealPage
National MID-YEAR 2024 ANNUAL Inventory Change
National MID-YEAR 2024 ANNUAL effective RENT Change
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© 2024 Berkadia Real Estate Advisors LLC
Berkadia® is a trademark of Berkadia Proprietary Holding LLC Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. This website is not intended to solicit commercial mortgage loan brokerage business in Nevada. Investment sales and realestate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx
The information contained in this flyer has been obtained from sources we believe to be reliable; however, we have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. While we do not doubt its accuracy, we have not verified it and neither we, nor the Owner, make any guarantee, warranty or representation of any kind or nature about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example and do not necessarily represent past, current or future performance of the property. You and your advisors should conduct a careful and independent investigation of the property to determine to your satisfaction the suitability of the property and the quality of itstenancy for your records.
EMPLOYMENT
DELIVERIES & ABSORPTION
ANNUAL INVENTORY CHANGE
RENT & OCCUPANCY
ANNUAL EFFECTIVE RENT CHANGE
SALES
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San Francisco-Oakland
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Washington, D.C.
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Orange County
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National Market Report
Atlanta
Austin
Boston
Chicago
Dallas-Fort Worth
Houston
Washington, D.C.
Phoenix
South Florida
Los Angeles
Orange County
Orlando
Philadelphia
San Diego
San Francisco-Oakland
San Jose
Seattle-Tacoma
Las Vegas
Salt Lake City
Atlanta
Orlando
South Florida
Under Construction
Under Construction/Lease-Up
Deliveries
Absorption
Effective Rent Change
Source: RealPage
New York Madison Northern New Jersey Orange County, CA Milwaukee West Michigan Knoxville Ventura County San Jose Omaha
97.0% 97.0% 96.2% 96.1% 96.1% 95.8% 95.8% 95.8% 95.7% 95.5%
-30 -110 -70 -10 -80 -60 -50 -40 -10 -120
$4,465 $1,552 $2,715 $2,802 $1,590 $1,285 $1,482 $2,725 $3,124 $1,216
0.2% 8.5% 4.9% 2.3% 5.9% 4.5% 2.9% 1.4% 0.8% 4.1%
Q2 2024 Occupancy
YOY (BPS)
Q2 2024 Effective Rent
YOY
Source: RealPage
National Effective Rent
National Effective Rent & Occupancy
National Occupancy
Top MARKET PERFORMANCE
Source: Moody’s Analytics
MARKET (BY OCCUPANCY)
1/2
Madison Milwaukee St. Louis Louisville Cleveland Northern New Jersey Cincinnati West Michigan Chicago Washington, D.C.
97.0% 96.1% 93.6% 94.6% 94.6% 96.2% 95.1% 95.8% 95.2% 94.9%
-110 -80 -120 10 -80 -70 -60 -60 -20 0
$1,552 $1,590 $1,318 $1,255 $1,289 $2,715 $1,403 $1,285 $2,023 $2,173
8.5% 5.9% 5.5% 5.5% 5.1% 4.9% 4.7% 4.5% 4.4% 4.4%
Q2 2024 Occupancy
MARKET (BY RENT GROWTH)
YOY (BPS)
Q2 2024 Effective Rent
YOY
2/2
Annual Inventory Change
HOVER OVER THE MAP FOR MARKET RANKINGS
0.1 % - 1.1 %
1.2 % - 2.1 %
2.2% - 2.9%
3.0% - 3.7%
3.8% - 6.5%
HOVER OVER THE MAP FOR MORE INFO
TOP 10 MARKETS
Annual inventory change: 2.7%
NATIONAL Mid-Year 2024 Annual Inventory Change
New Orleans
0.1%
15.7%
01. Huntsville, AL
7.0%
05. Colorado Springs, CO
6.5%
08. Charlotte, NC
7.0%
06. Raleigh - Durham, NC
6.2%
04. Nashville, TN
6.6%
07. Denver, co
6.4%
09. Jacksonville, FL
7.8%
03. AUSTIN, TX
6.4%
10. Salt Lake City, UT
10.0%
02. BOISE, ID
El Paso
0.6%
Albuquerque
2.0%
Reno
4.4%
DETROIT
1.0%
Ann Arbor
1.2%
Indianapolis
3.0%
Milwaukee
1.6%
Chicago
0.9%
Madison
1.7%
St. Louis
1.7%
Kansas City
2.0%
Wichita
3.2%
Tulsa
1.1%
Oklahoma City
1.3%
Des Moines
3.6%
Omaha
2.9%
Little Rock
1.1%
Baton Rouge
2.7%
Cleveland
0.7%
Columbus
3.4%
Cincinnati
1.8%
Lexington
1.2%
Louisville
2.4%
Knoxville
3.5%
Chattanooga
2.2%
Memphis
0.8%
Birmingham
2.2%
Mobile
2.4%
New York
0.6%
Boston
1.7%
Philadelphia
2.4%
Richmond
3.6%
Portland
2.1%
Seattle-Tacoma
2.8%
Sacramento
2.0%
San Jose
0.7%
Ventura County
1.1%
Inland Empire
1.6%
Los Angeles
0.7%
Orange County, CA
0.9%
San Diego
1.4%
Tucson
2.0%
Phoenix
5.1%
Las Vegas
2.5%
WEST MICHIGAN
2.0%
Virginia Beach
1.5%
Pensacola, FL
4.2%
Greenville, SC
3.8%
Charleston, SC
4.0%
ATLANTA
4.2%
Tallahassee
3.0%
Orlando
5.3%
South Florida
2.6%
BALTIMORE
1.0%
Washington, D.C.
2.0%
Minneapolis-
St. Paul
3.5%
Tampa-
St. Petersburg
3.4%
Dallas-
Fort Worth
4.3%
Northern New Jersey
2.1%
San Francisco-Oakland
1.1%
SAN ANTONIO
3.9%
HOUSTON
3.4%
YOY Effective Rent Change
HOVER OVER THE MAP FOR MARKET RANKINGS
( 6. 9%) - ( 4. 2 %)
( 4. 1 %) - ( 1 . 1 %)
( 1 . 0 %) - 0 . 0 %
0 . 1 % - 2 . 9%
3. 0 % - 4. 9%
HOVER OVER THE MAP FOR MORE INFO
TOP 10 MARKETS
8.5%
01. madison, wi
4.9%
07. Northern
New jersey
4.5%
09. WESTERN MICHIGAN
5.6%
03. Lexington, ky
4.4%
10. Chicago, IL
5.9%
02. Milwaukee, WI
5.5%
04. St. Louis, MO
5.5%
05. Louisville, KY
5.1%
06. Cleveland, OH
4.7%
08. Cincinnati, OH
Austin
-6.9%
Albuquerque
1.3%
Denver
3.1%
DETROIT
2.3%
Ann Arbor
4.3%
BOISE
-2.1%
EL PASO
3.7%
Little Rock
4.1%
Tallahassee
0.6%
Kansas City
4.3%
Wichita
4.1%
Tulsa
4.0%
Oklahoma City
3.3%
Des Moines
3.5%
RENO
1.5%
Jacksonville
-4.2%
Baton Rouge
-1.1%
Indianapolis
3.2%
Columbus
2.6%
Pensacola
1.9%
Knoxville
2.9%
HUNTSVILLE
-1.8%
Nashville
-2.1%
Chattanooga
0.0%
Memphis
0.3%
Birmingham
1.5%
Mobile
0.2%
New York
0.2%
Boston
3.2%
Philadelphia
2.6%
Richmond
1.7%
Portland
-0.6%
Seattle-Tacoma
2.9%
Sacramento
1.2%
San Jose
0.8%
Ventura County
1.4%
Inland Empire
-0.1%
Los Angeles
-0.4%
Orange County, CA
2.3%
San Diego
-0.7%
Tucson
-1.2%
Phoenix
-2.5%
Las Vegas
0.3%
WEST MICHIGAN
3.6%
Virginia Beach
2.6%
Raleigh-Durham
-3.3%
Greenville, SC
-0.2%
Charleston, SC
0.9%
ATLANTA
-4.2%
Salt lake city
-2.5%
Orlando
-0.3%
South Florida
0.6%
BALTIMORE
1.5%
Washington, D.C.
4.4%
Minneapolis-
St. Paul
1.8%
Tampa-
St. Petersburg
-1.6%
Dallas-
Fort Worth
-1.9%
San Francisco-Oakland
0.9%
Colorado
Springs
-2.7%
SAN ANTONIO
-3.5%
Charlotte
-2.7%
HOUSTON
0.0%
Omaha
4.1%
New Orleans
3.2%
Huntsville, AL Boise, ID Austin, TX Nashville, TN Colorado Springs, CO Raleigh - Durham, NC Denver, CO Charlotte, NC Jacksonville, FL Salt Lake City, UT
15.7% 10.0% 7.8% 7.4% 7.0% 7.0% 6.6% 6.5% 6.4% 6.4%
Madison, WI Milwaukee, WI Lexington, KY St. Louis, MO Louisville, KY Cleveland, OH Newark, NJ Cincinnati, OH Western Michigan Chicago, IL
8.5% 5.9% 5.6% 5.5% 5.5% 5.1% 4.9% 4.7% 4.5% 4.4%
ANNUAL effective rent change: 0.9%
NATIONAL Mid-Year 2024 Annual effective rent Change
Atlanta
Austin
Boston
Chicago
Dallas-Fort Worth
Houston
Washington, D.C.
Phoenix
South Florida
Los Angeles
Orange County
Orlando
Philadelphia
San Diego
San Francisco-Oakland
San Jose
Seattle-Tacoma
Las Vegas
Salt Lake City
© 2024 Berkadia Real Estate Advisors LLC
Berkadia® is a trademark of Berkadia Proprietary Holding LLC Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. This website is not intended to solicit commercial mortgage loan brokerage business in Nevada. Investment sales and realestate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. For state licensing details for the above entities, visit: www.berkadia.com/legal/licensing.aspx
The information contained in this flyer has been obtained from sources we believe to be reliable; however, we have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. While we do not doubt its accuracy, we have not verified it and neither we, nor the Owner, make any guarantee, warranty or representation of any kind or nature about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example and do not necessarily represent past, current or future performance of the property. You and your advisors should conduct a careful and independent investigation of the property to determine to your satisfaction the suitability of the property and the quality of itstenancy for your records.
National Market Report
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Unemployment Rate
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Effective rent and occupancy reflect stabilized properties and does not include preleased units or properties in lease-up. A newly constructed property is considered stabilized once it becomes 85% occupied.
